Neon Energy Limited announce that the Ca Ngu-1 exploration well, located in Block 120 offshore Vietnam, was spudded on 21 October 2013. The well is designed to test the Ca Ngu oil/gas prospect, which is comprised of Pliocene clastic and Miocene carbonate reservoir targets. Operator Eni is drilling the well with the Songa Mercur semi-submersible drilling rig, in a water depth of 270 metres to a planned Total Depth (TD) of 1,500 metres.

The cost of the well is estimated to be up to US$39 million, however in the event of a dry hole the cost is likely to be substantially reduced due to a simplified casing profile and associated reduction in drilling time.

Tags: Neon Energy Limited